Media: Blockchain.com faces $270m hit from Three Arrows Capital

The Blockchain.com exchange and cryptocurrency wallet provider could lose $270 million, previously lent to the hedge fund Three Arrows Capital. CoinDesk reports this.

“Three Arrows is rapidly becoming insolvent. The default affects assets valued at $270 million — cryptocurrencies and USD-denominated loans from Blockchain.com,” the letter to shareholders, obtained by the publication, states.

The CEO of Blockchain.com, Peter Smith, noted that over the past four years Three Arrows Capital has borrowed and repaid cryptocurrency loans totaling more than $700 million.

He also stressed that the exchange remains liquid and solvent, and that the situation will not affect users.

A source familiar with Blockchain.com’s finances told the publication that the company has enough resources to cope with the losses.

According to Nansen, founded by Su Zhu and Kyle Davies in 2012, Three Arrows Capital (3AC) managed about $10 billion in assets. Against the backdrop of the collapse of the cryptocurrency market and the Terra crash, there was information about the insolvency of 3AC.

Earlier, Blockchain.com and the Deribit platform called for the liquidation of Three Arrows Capital. The latter filed for bankruptcy.

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